A

Report on

“Relationship with the distributors to maintain the long term profits of the company & To Study various large cap, Mid cap funds of different

AMCs and their comparative analysis.”

Submitted by: Nikhil Bajaj 07BS2556

Corporate Guide: Academic Guide: Mr. Vikas Sharma Prof. V.N.Srivastava

1

Acknowledgements 

I take this opportunity to express my deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work. 

I am greatly obliged to, for providing me with the right kind of opportunity and facilities to complete this venture. 

My first word of gratitude is due to Mr. Vikas Sharma – Relationship Manager, Reliance Mutual Fund, My corporate guide, for his kind help and support and his valuable guidance throughout my project. I am thankful to him for providing me with necessary insights and helping me out at every single step.  

I am highly thankful to Prof. V.N.Srivastava – my internal faculty guide under whose able guidance this project work was carried out. I thank him for his continuous support and mentoring during the tenure of the project. 

Finally, I would also like to thank all my dear friends for their cooperation, advice and encouragement during the long and arduous task of carrying out the project and preparing this report 

 

2

TABLE OF CONTENTS

1 Acknowledgement 2

2 Abstract 4

4 Executive Summary 5

5 Objectives of the Project 6

6 Introduction 7

7 Structure of Mutual Fund in India 16

8 History of Mutual Fund 20

9 Company Background 21

10 Literature Review 24

11 Marketing of financial products 25

12 SWOT Analysis 35

12 Methodology 44

13 Analysis 46

14 How company got benefit by my project 51

14 Comparison with other AMCs 53

15 Recommendations & Suggestions 65

15 Bibliography 66

3

ABSTRACT

I joined RELIANCE MUTUAL FUND for internship program (as a part of MBA), I only had a theoretical knowledge of related subjects, thanks to my Faculty Guide and my Company Mentor for giving me an opportunity to implement my theoretical knowledge in practical aspect.

My Company mentor Mr. Vikas Sharma has given me the project to manage the relationship with the existing distributors, updating all the necessary information to them & to empanel new distributors with Reliance Mutual Fund in SOUTH DELHI. I started this project by understanding the concept & technicalities of Mutual Fund. Analysis of SOUTH DELHI market through Primary & Secondary data helped me for further strategy. I have collected the secondary data of different ratios, portfolios, volatility measures, NAVs performance & returns of all the leading AMCs from the net and other source to make my analysis more effective. For the analysis of services’ & overall quality of Reliance AMC with other leading AMCs, I collected the Primary Data through Questionnaire. It helped me a lot to complete my project on time. Interaction with IFAs (Individual Financial Adviser) also helped me to understand more the concept & technicalities of mutual funds & also, compare our AMC with other AMCs because these are the persons who have enough knowledge about the investment market and investor behaviour.

The Final Report includes, the analysis of the whole data (primary and Secondary) by putting in Graphical Mode. This analysis might be a Value Addition to RELIANCE Mutual Fund to make a strategy for particular Area (SOUTH DELHI).

4

Executive Summary

The project involves a study of mutual fund industry and evaluating and suggesting measures to improve the services provided by the Representatives of Reliance Mutual fund to the retail distributors and also to identify the strong as well as the weak points so that an appropriate sales pitch could be developed. The sales pitch highlighted features like Reliance being the pioneer in terms of AUM, its huge distributor base, returns being independent of the market ups and downs, etc. Calls were made to all the different channel distributors (Retail) across all tiers from company‘s database and appointments were sought. Thereafter a brief questionnaire was filled up by them regarding their and consumer’s perception about reliance since they get the direct interaction with investors.

The second part of the project is to study & analyze the comparison of beta, volatility measures, portfolios and returns of different large Cap, mid cap & small cap funds because every distributors ask about the different ratios & beta (risk factor) of Reliance. So I have to provide all the necessary information to them so as to manage the relationship with them.

A lot of interaction has been done with the distributors about the products and services of Reliance. A comparative analysis is also done of Reliance Mutual Fund with other AMC’s in order to find the market position of the company with respect to services provided by it. It was found that there are many issues on which the company needs to improve, which are elaborated in further parts of the report.

5

/

Objective of the project

As the title of the project suggests, the objective of the project is to find out the satisfaction level of Distributors with respect to the services & overall quality provided by the AMC.

The following are the sub objectives of the project:

Understanding the attitude and behaviour of the distributors towards Reliance Mutual Fund.

Find out there preference parameters for selling a particular fund. Understanding the competition for the service provided by different

mutual fund companies. Finding out ways and means to improve on the services by Reliance

Mutual Fund. Understanding the different ratios & portfolios so as to tell the

distributors about these terms, by this, managing the relationship with the distributors.

6

Introduction

What are mutual funds?

A mutual fund is a common pool of money invested in a portfolio of securities towards a stated objective. It is a joint or a mutual ownership of funds and thus belong to all the investors.

7

Advantages of Mutual Funds:

Professional management :

Even if an investor has a big amount of capital available to him, he benefits from the professional management skills brought in by the fund in the management of investor’s portfolio. The investment management skills along with the needed research into available investment options ensure a much better return than what an investor can manage on his own.

Diversification of Risk :

An investor in a mutual fund acquires a diversified portfolio, no matter how small his investment. Diversification reduces risk of loss, as compared to investing directly in one or two shares or debentures or other instruments. When an investor invests directly, all the risk of potential loss is his own. A fund investor also reduces his risk in another way. While investing in pool of funds with other investors, any loss on one or two securities is also shared with other investors. This risk reduction is one of the most important benefits of a collective investment vehicle like mutual fund

8

Reduction of Transaction Cost :

A direct investor bears all the cost of investing such as brokerage and custody of security. When going through a fund, he has the benefits of economies of scale; the funds pay a lesser costs because of larger volumes, benefits passed on to its investors.

Convenience and Flexibility - Mutual fund management companies offer many investor services that a direct market investor cannot get. Investors can easily transfer their holdings from one scheme to the other; get updated market information, and so on.

Liquidity - Often, investors hold shares or bonds they cannot directly, easily and quickly sell. Investment in mutual funds, on the other hand, is more liquid. An investor can liquidate the investment, by selling the units to the fund if open-end, or selling them in the market if the fund is close-end, and collect funds at the end of each period specified by the mutual fund or the stock market.

Regulation- Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.

Disadvantages of Mutual Funds:

Professional Management :

Many investors debate over whether or not the so-called professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut.

Costs :

Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

9

Dilution :

It's possible to have too much diversification. Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

Taxes

When making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability

Mutual funds classifications:

There are wide variety of Mutual Fund schemes that cater to investor needs, whatever the age, financial position, risk tolerance and return expectations. The mutual fund schemes can be classified according to both their investment objective (like income, growth, tax saving) as well as the number of units (if these are unlimited then the fund is an open-ended one while if there are limited units then the fund is close-ended).

10

Open-ended schemes

These funds are sold at the NAV based prices, generally calculated on every business day. These schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity - i.e. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange.

Open-ended funds are bringing in a revival of the mutual fund industry owing to increased liquidity, transparency and performance in the new open-ended funds

11

promoted by the private sector and foreign players. Open-ended funds score over close-ended ones on several counts. Some of these are listed below:

a) Any time exit option: The issuing company directly takes the responsibility of providing an entry and an exit. This provides ready liquidity to the investors and avoids reliance on transfer deeds, signature verifications and bad deliveries.

b) Tax advantage: Though Budget 2004 proposals envisage a tax rate of 20.91% (Corporate investors) and 13.06875% (Non-Corporate investors) on dividend distribution made by the Debt funds, the funds continue to remain attractive investment vehicles. In equity plans there is no distribution tax.

c) Any time entry option: An open-ended fund allows one to enter the fund at any time and even to invest at regular intervals (a systematic investment plan).

Close ended schemes

Schemes that have a stipulated maturity period, limited capitalization and the units are listed on the stock exchange are called close-ended schemes.

These schemes have historically seen a lot of subscription. This popularity is estimated to be on account of firstly, public sector mutual funds having floated a lot of close-ended income schemes with guaranteed returns and secondly easy liquidity on account of listing on the stock exchanges.

Classification according to investment objectives:

Mutual funds have specific investment objectives such as growth of capital, safety of principal, current income or tax-exempt income. In general mutual funds fall into three general categories:

Equity Funds invest in shares or equity of companies. Fixed-Income funds invest in government or corporate securities that offer

fixed rates of return. Balanced Funds invest in a combination of both stocks and bonds.

i) Growth Funds

These funds seek to provide growth of capital with secondary emphasis on dividend. They invest in shares with a potential for growth and capital

12

appreciation. Because they invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential, growth funds provide low current income. Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth.

These funds may invest in a broad range of industries or concentrate on one or more industry sectors. Growth funds are suitable for investors who can afford to assume the risk of potential loss in value of their investment in the hope of achieving substantial and rapid gains.

They are not suitable for investors who must conserve their principal or who must maximize current income.

ii) Growth and Income Funds

Growth and income funds seek long-term growth of capital as well as current income. The investment strategies used to reach these goals vary among funds. Some invest in a dual portfolio consisting of growth stocks and income stocks, or a combination of growth stocks, stocks paying high dividends, preferred stocks, convertible securities or fixed-income securities such as corporate bonds and money market instruments. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks.

Growth and income funds have low to moderate stability of principal and moderate potential for current income and growth. They are suitable for investors who can assume some risk to achieve growth of capital but who also want to maintain a moderate level of current income.

iii) Fixed-Income Funds

The goal of fixed income funds is to provide current income consistent with the preservation of capital.

These funds invest in corporate bonds or government-backed mortgage securities that have a fixed rate of return. Within the fixed-income category, funds vary greatly in their stability of principal and in their dividend yields. High-yield funds, which seek to maximize yield by investing in lower-rated bonds of longer maturities, entail less stability of principal than fixed-income funds that invest in higher-rated but lower-yielding securities.

Some fixed-income funds seek to minimize risk by investing exclusively in securities whose timely payment of interest and principal is backed by the full faith and credit of the Indian Government. Fixed-income funds are suitable for

13

investors who want to maximize current income and who can assume a degree of capital risk in order to do so.

iv) Balanced Funds

The Balanced fund aims to provide both growth and income. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. These funds are ideal for investors who are looking for a combination of income and moderate growth.

v) Money Market Funds/Liquid Funds

For the cautious investor, these funds provide a very high stability of principal while seeking a moderate to high current income. They invest in highly liquid, virtually risk-free, short-term debt securities of agencies of the Indian Government, banks and corporations and Treasury Bills. Because of their short-term investments, money market mutual funds are able to keep a virtually constant unit price; only the yield fluctuates.

Therefore, they are an attractive alternative to bank accounts. With yields that are generally competitive with - and usually higher than -- yields on bank savings account, they offer several advantages. Money can be withdrawn any time without penalty. Although not insured, money market funds invest only in highly liquid, short-term, top-rated money market instruments.

Money market funds are suitable for investors who want high stability of principal and current income with immediate liquidity.

vi) Specialty/Sector Funds

These funds invest in securities of a specific industry or sector of the economy such as health care, technology, leisure, utilities or precious metals. The funds enable investors to diversify holdings among many companies within an industry, a more conservative approach than investing directly in one particular company.

Sector funds offer the opportunity for sharp capital gains in cases where the fund's industry is "in favor" but also entail the risk of capital losses when the industry is out of favor. While sector funds restrict holdings to a particular industry, other specialty funds such as index funds give investors a broadly

14

diversified portfolio and attempt to mirror the performance of various market averages.

Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty or other broad stock market indices. They are not suitable for investors who must conserve their principal or maximize current income.

RISK HIERARCHY OF DIFFERENT MUTUAL FUNDS:

Thus, different mutual fund schemes are exposed to different levels of risk and investors should know the level of risks associated with these schemes before investing. The graphical representation hereunder provides a clearer picture of the relationship between mutual funds and levels of risk associated with these funds:

15

Structure of Mutual Funds in India:

Mutual funds in India act as a Unit Trust. The structure is required to be followed by mutual funds in India as per

SEBI Regulations, 1996. It is constituted in the form of a Public Trust created under the Indian trust

act, 1882. The Trustees hold the unit holders money in a fiduciary capacity i.e. the

money belong to the unit holders and is entrusted to the fund for the purpose of investment.

The Trustees do not manage the portfolio of securities directly, for this specialist function they appoint the Asset Management Company.

The trust is executed through a document called a trust deed that is executed by the fund sponsor in favour of the trustees.

The Trust deed is required to be stamped as registered under the provisions of the Indian Registration Act and registered with SEBI.

The role of the Asset Management Company is to act as the investment manager of the Trust and must have a net worth of at least Rs. 10 crores.

16

Sponsors:

Sponsor is the person who acting alone or in combination with another body corporate establishes a mutual fund. Sponsor must contribute atleast 40% of the networth of the Investment Managed and meet the eligibility criteria prescribed under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution made by it towards setting up of the Mutual Fund.

Trust:

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

Trustee:

Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders and inter alia ensure that the AMC functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Offer Documents of the respective Schemes. Atleast 2/3rd directors of the Trustee are independent directors who are not associated with the Sponsor in any manner.

Asset Management Company:

The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. Atleast 50% of the directors of the AMC are independent directors who are not associated with the Sponsor in any manner. The AMC must have a networth of atleast 10 crore at all times.

17

Registrar and transfer agent:

The AMC if so authorised by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders. The Registrar and Transfer agent also handles communications with investors and updates investor records.

Some other related terminologies:

Custodians:

The bank or trust company that maintains a mutual fund’s assets, including its portfolio of securities or some record of them. Provides safe keeping of securities but has no role in portfolio management.

Distributors and agents:

Sell units on behalf of funds and are generally appointed by the AMC.

Corpus:

The total amount of money invested in a scheme by all the investors.

Entry/Exit load :

Entry load is the load on purchase or switch-out of units

Exit load is load on redemptions Dividend switch out of units.

NET ASSET VALUE:

A mutual fund is a common investment vehicle where the assets of the fund belong directly to the investors. Investors’ subscriptions are accounted for by the fund not as liabilities or deposits but as Unit Capital. On the other hand, the investments made on behalf of the investors are reflected on the assets side and are the main constituent of the balance sheet. There are, however, liabilities of a strictly short-term nature that may be part of the balance sheet. The fund’s Net Assets are therefore defined as the assets minus the liabilities. As there are many investors in a fund, it is common practice for mutual funds to compute the share of each investor on the basis of the value

18

of Net Assets Per Share/Unit, commonly known as the Net Asset Value (NAV).

The following are the regulatory requirements and accounting definitions laid down by SEBI.

For the purpose of the NAV calculation, the day on which NAV is calculated by a fund is known as the valuation date.A fund’s NAV is affected by four sets of factors: Purchase and sale of investment securities Valuation of all investment securities held Other assets and liabilities, and Units sold or redeemed

Measuring mutual fund performance

CHANGE IN NAV- THE MOST COMMON MEASURE

PURPOSE: If an investor wants to compute the Return on Investment between two dates, he can simply use the Per Unit Net Asset Value at the beginning and the end periods, and calculate the change in the value of the NAV between the two dates in absolute and percentage terms.

FORMULA:

For NAV change in absolute terms: (NAV at the end of the period) – (NAV at the beginning of the period)

For NAV Change in percentage terms:(Absolute change in NAV/NAV at the beginning) * 100

If period covered is less/more than one year: for annualized NAV change:{[(Absolute change in NAV/NAV at the beginning)/months covered]*12} 100Example: Thus, if a fund’s NAV was Rs.20 at the beginning of the year and Rs.22 at the end of the year, the absolute change was Rs.2 (22-20) and percentage change was + 10% (22-20/20*100). Now, let us assume that an investor purchases a unit in an open-end fund at Rs.20, and its NAV after 16

19

months is Rs.22, the annualized NAV change is: 7.5%: ({[22-20]/20} 16}*12)*100).

History of Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank the. The history of mutual funds in India can be broadly divided into four distinct phases.

First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament,

set up by the Reserve Bank of India. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management

Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987,entry of non- UTI, public sector mutual funds set up by public sector

banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).

LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.

At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

1993 - Entry of private sector funds. Also, first Mutual Fund Regulations came into being, under which all

mutual funds, except UTI were to be registered and governed. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. As at the end of January 2003, there were 33 mutual funds with total

assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under

management was way ahead of other mutual funds.

Fourth Phase – since February 2003

20

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.

As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.

Reliance Mutual Fund - Company Profile

Companies Vision:

Reliance Capital Asset Management Ltd. has a vision of being a leading player in the Mutual Fund business and has achieved significant success and visibility in the market.

Growth and visibility is adhered to Good Conduct in the marketplace. At Reliance Capital Asset Management Ltd., the implementation and observance of ethical processes and policies has helped them to stand up to the scrutiny of the domestic and international investors.

Management:

The management at Reliance Capital Asset Management Ltd. is committed to good Corporate Governance, which includes transparency and timely dissemination of information to its investors and unit holders. The Reliance Capital Asset Management Limited Board is a professional body, including well-experienced and knowledgeable Independent Directors. Regular Audit Committee meetings are conducted to review the operations and performance of the company.

Employees:

Reliance Capital Asset Management Ltd. has a preset code of conduct for all its officers. It has a clearly defined prohibition on insider trading policy and regulations. The management believes in the principles of propriety and utmost care is taken while handling public money, making proper and adequate disclosures.Reliance Capital Asset Management Ltd. gives top priority to compliance in true letter and spirit, fully understanding its fiduciary responsibilities.

The Sponsors

Reliance Capital Limited.

21

Reliance Mutual Fund

Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settlor/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee.RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund has been changed to Reliance Mutual Fund effective 11th. March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date 11th. March 2004. Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities.

The main objectives of the Trust are:

To carry on the activity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders;

To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and

To take such steps as may be necessary from time to time to realise the effects without any limitation.

Custodian

The Trustee has appointed Deutsche Bank, AG located at Kodak House, Ground Floor, 222 Dr. D.N.Road, Mumbai-400 001, as the Custodian of the securities that are bought and sold under the Scheme.

The Registrar

Reliance Capital Asset Management Limited has appointed M/s. Karvy Computershare Pvt. Limited to act as the Registrar and Transfer Agent to

22

the Schemes of Reliance Mutual Fund. M/s. Karvy Computershare Pvt. Limited (KCL)

Trustees

Reliance Capital Trustee Co. Limited

23

Organizational Hierarchy

24

Literature Review

“ Mutual funds are as much about marketing as investing in the 1990’s, which is why the hoary cliché” Mutual funds are sold, not bought” is as true as ever. As Glorianne Stromberg once told Canadian Business magazine, the fund business may have started out in the portfolio management business, but “somewhere along the line, the marketers got hold of it, and the advisory function has been almost superseded by the sales function.”

-Jonathan Chevreau, the Wealthy Boomer

Successful fund marketing creates value for Fund companies, dealers and unit holders so that each is satisfied. The definition goes much deeper than simply "selling something to somebody". Fund marketeers must understand both the "Needs & Wants" side of the equation and the "Product, Ideas, & Services" side of the equation. Not only must marketing fully understand both sides of the equation, but it must also effectively communicate the details of each in order to successfully bridge the gap between the two. Every facet of modern marketing has been effectively employed to dramatically grow the Indian mutual fund industry.

25

MARKETING IN MUTUAL FUNDS

Marketing is the process of planning and executing the conception, pricing, promotion, communication and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Through marketing, individuals and groups create and exchange products and services with others in order to create value or satisfy wants and needs.

 

Marketing

 

From this definition, it should be clear that successful fund marketing creates value for Fund companies, dealers and unit holders so that each is satisfied. The definition goes much deeper than simply "selling something to somebody". Fund marketers must understand both the "Needs & Wants" side of the equation and the "Product, Ideas, & Services" side of the equation. Not only must marketing fully understand both sides of the equation, but it must also effectively communicate the details of each in order to successfully bridge the gap between the two. Every facet of modern marketing has been effectively employed to dramatically grow the Indian mutual fund industry.

 The fund industry has established an exceptional sales support infrastructure. Fund specialists and fund companies, bank branch subsidiaries and discount brokers are ready to provide answers telephonically to your fund questions all day long. Telephone etiquette is as good as it gets. Web sites have been established with educational material, guides, charting functions, fund profiles, fees and historical returns in abundance. Descriptive brochures, newsletters and tax guides are readily available to help with your purchase decision. Getting information about a fund for the managers is becoming easier. The business press routinely provides loads of information on which to base informative articles. One can often dial in on the conference calls managers hold regularly with sales representatives.  

It has a multi-channel distribution system which is broad-based and responsive to general queries or orders by mail, phone, in person or e-mail. The sales service infrastructure is an integral, well-oiled part of the marketing initiative.

26

The essence of professional selling today is building and maintaining of high quality relationships, based on establishing a high level of trust and credibility with the customer. Your job is to create and keep a customer indefinitely. You keep your customer by continually investing in maintaining the quality of your relationships. You should approach your clients as consultants and not as vendors and help them achieve their financial goals.

The Selling Process

Selling Models

Old model New Model

As mentioned earlier, apart from the existing players like Reliance, Franklin Templeton, Fidelity, Prudential ICICI etc. more and more players like Bharti AXA, JP Morgan, AIG etc. are entering the mutual fund industry and this has given rise to increased competition among the players. To sustain this cut throat competition, the fund houses are developing new marketing strategies and revamping the existing strategies. Thus, the marketing in mutual funds have assumed an important role like never before. The marketing strategies that can help the fund houses to hold the market share are:

1. Product Innovation2. Devise innovative channels of delivery, i.e., different distribution channels

and models.3. Build brand awareness strong enough to “pull” the investors towards

itself.

27

1. PRODUCT INNOVATION

Of late, the marketers have realized the importance of marketing in mutual funds and have come up with product innovation in the category of mutual funds as well. With the marketing mantra – “Customer is the king”, the mutual fund houses understand the importance of innovating need based products. Different segments have different expectations like long term growth, regular income, tax benefits etc. New products are aimed at satisfying one or more objectives. Indian mutual funds have seen many products launched to cater the ever increasing need of the investors. Product innovation in mutual funds is one of the discernable trends that have the potential to change the face of Indian mutual fund industry.

The asset management companies are shifting from old plain vanilla schemes towards differentiating themselves by providing innovative options to the investors.

For instance:

Apart from the plain vanilla schemes, fund houses are offering SECTOR FUNDS, in order to capitalize on the success of sectors like Banking, Power, Media & Entertainment, pharmaceuticals etc.

Also keeping in mind the different type of risk taking propensity among the investors, fund houses have come up with BALANCED/ HYBRID FUNDS to cater effectively to their investors.

2. DISTRIBUTION IN MUTUAL FUNDS:

In the U.S.A, mutual funds are sold through five principal distribution channels:

1. Direct Channel

2. Retirement Plan Channel

3. Advice Channel

4. Institutional Channel

5. Supermarket Channel

The first four channels primarily serve individual investors. In the direct channel, investors carry out transactions directly with mutual funds.

28

In the advice, retirement plan, and supermarket channels, individual investors use third parties or intermediaries that conduct transactions with mutual funds on their behalf. Third parties also provide services to fund investors on behalf of mutual funds. The most important feature of the advice channel is the provision of investment advice and ongoing assistance to fund investors by financial advisers at full-service securities firms, banks, insurance agencies, and financial planning firms. Advisers are compensated through sales loads or from asset-based fees.

The retirement plan channel primarily consists of employer-sponsored defined contribution plans in which employers provide mutual funds and other investments for purchase by plan participants through payroll deductions.

The supermarket channel is made up of discount brokers that offer mutual funds from a large number of fund sponsors. Many of the fund offerings are subject to no transaction charges or sales loads. Businesses, financial institutions, endowments, foundations, and other institutional investors use the institutional channel to conduct transactions either directly with mutual funds or through third parties.

Having looked at the distribution channels in the U.S.A we should understand that there is a growing need for a strong distribution network and models for the mutual fund industry in India as well, to serve the huge untapped market in the country. The intensifying competition and the need to attain economies of scale are forcing industry players to increase their reach in non-metro cities and small towns, where the potential is high, but, penetration is low. This is resulting in fund houses exploring innovative distribution channels.

In India, mutual funds are sold through four principal channels viz.:

1. Independent Financial Advisors (IFAs)

2. Direct channel

3. National Distributors channel

4. Banks

However, in Reliance, the distribution channels are slightly different. The flow chart for the distribution channels for Reliance is as follows:

29

o The National Distributors consists of all the private banks like Standard Chartered Bank, American Express Bank, Deutsche bank to name a few and other investment consultants like Karvy securities, Bajaj Capital etc.

o The Independent Financial Advisors are the ones who are eligible to sell financial products individually to the retail investors after they have obtained AMFI certification.

o The Alternate Channels consists of all the PSUs like State Bank of India, Oriental bank of Commerce, Unit Trust of India bank among many.

o The Corporate Channels are targeted to the corporate clients.

It is very imperative for the fund houses to develop a proper distribution network in order to reach out to the investors effectively.

3. BRAND AWARENESS IN MUTUAL FUNDS:

Brand name in mutual funds highlights the inherent benefits and investment objectives and ensures investor loyalty. Brand name and identity is an important marketing aspect because it facilitates product identification at the market place.

30

Reliance

Distribution Channel

National Distributors

IndependentFinancial Advisors

Alternate Channels

CorporateChannels

However, product identification coupled with BRAND AWARENESS will lead to the true success of the brand and the company. High brand awareness leads to high levels of usage and preference. With keen competition today, mutual fund brands need to work harder on the quality of awareness to drive consideration. Creating media noise is just not enough to secure strong brand equity. Indian investors are more sophisticated than ever and are looking at overall comfort levels with the fund houses.

To achieve this, the fund house should be able to carve a niche for itself in the mind of the customers by making them aware about their products. A significant amount of brand awareness in the minds of the investors/ customers creates a PULL for the products when the customers walk in and ask for the product by themselves, instead of a third party pushing it for the company.

Strategies for selling & creating brand awareness:

1. Know your productBefore you start selling Mutual funds you need to understand the scheme you are selling. You should not only focus on the specific features of the scheme but focus also on the specific financial goals of the prospect and show how the scheme enables him to get what he really wants. You should keep yourself updated on the track record of the scheme as well as the overall performance of the mutual fund.

Thus before recommending an investment you should know: The strength of the Asset Management Company and sponsors of Mutual

Fund. The various choices/plans available and their advantages The nature of the scheme The potential of returns and the risk associated with it Tax benefits Operational details.

2. Know Your Clients

Clients are different. Their financial needs and choice of investment vary depending upon their age, earning capacity, family commitments and ability to take on risks. Some broad types of clients are given below:

Young and accumulating: Typically under 40, seeking to build capital for a long-term goal such as buying a house, children's education or a family wedding. These clients may take higher risks for higher returns.

Middle-aged with family commitments: Typically between 40 and 60, in their prime earning years and with family commitments that require large,

31

periodic expenditures. They may be willing to sacrifice a higher return for a stable investment and lower risks.

Retired: Typically over 60, seeking income to meet their regular expenses and are primarily concerned with safety of their principal.

Institutions and high net worth individuals: Corporate, banks, trusts and wealthy investors, who seek an appropriate combination of tax efficient growth and income depending upon their return expectations and risk taking ability.

3. Prioritize Your Clients

To make the most of your time, you must identify the clients with whom you can establish a good business relationship. There are three types of clients - respective, potential and independent minded. The receptive clients are those who will work with you to develop a financial plan, have the discipline to invest regularly and believe in the merits of professional financial advisors.

The potential client is one who wishes to become a successful investor, but does not have the discipline or patience to do so. If you work closely with these investors, they could join the ranks of your good receptive clients. The independent minded are those who do not use financial intermediaries and prefer investing directly. Such clients need to be cultivated over time.

4. Understand Your Clients' Needs

For you are to be able to recommend a sound financial plan to your clients, you must understand their needs and priorities. Find out your client's:

Investment Objectives: Try to establish what your clients' real needs are. "I need more money" is not a real need or goal. On the other hand, something specific like "I need money to send my kids to college" or "I need money to retire" is a real need or goal. You must probe your clients so that their real needs come out.

Risk tolerance: Are they willing to take higher risks in anticipation of higher returns or would they prefer to play it safe and accept lesser returns.

Return expectations: What kind of returns would they like from their investment, how long are they willing to wait and in what do they want it i.e. capital appreciation or regular income.

Cash flow requirements: How much liquidity they want and when do they want it.

Tax benefits: Are your clients looking for any specific tax benefits on their investments. How important are tax concessions in choosing their investments?

5. Help Them Choose Their Investments

32

Having understood your client's profile and needs, you now have to advise them on where to invest. It might be a selection of only Mutual Funds or a combination of Mutual Funds and other investments.

6. Encourage Regular Investment

Advise your clients to invest early and stick to a regular investment plan. This will help them to make more money because the power of compounding enables your clients to earn income on income and their money to multiply at compounded rates.

7. Commit Them to Invest

The best plans and the best choice of investments are of little use unless your clients act upon them and invest. Ensure that your clients give you the commitment for their investment. Be ready with application forms and other documents and if necessary, help them to complete the paperwork and bank the cheques.

8. Provide Personalized After Sales Service

One of the most important responsibilities of a professional agent is to provide prompt, efficient and courteous service. You can build up lasting relationships by providing your clients personalized services such as:

o Making periodic calls to see if they need any help with their investments;

o Getting in touch if there is a great deal of fluctuation in market prices which may be of concern to them;

o Assessing any change in their personal circumstances which may call for a review of the financial plan recommended by you.

o Informing them of new schemes and products that could be useful to them;

o Following up with the Mutual Fund if your clients have experienced a service related problem with their investments.

Stay in touch with your clients on a regular basis. You will not only get more business from them, but you can also earn the business of their friends and relatives by getting positive

The use of advertising is slick and broad-based. Television, radio, newspapers, magazines, bill- boards and even security gate arms at airport parking locations promote fund investment. Colorful innovative brochures are distributed by mail at bank branches and advisor offices. The message is clear and consistent-Buy and Buy more. Fund companies quickly learned the folly of marketing just one or two funds, hence the vast variety of funds available. The danger for the fund

33

companies is that if performance goes in the tank than investors exit the funds pulling out tens of millions of dollars. Better to offer many varied funds so that if a few turn cold the others are still cooking and at least some performing ones can be prominently advertised in newspapers.  Mutual fund industry has seen a high rate of growth due to exceptional marketing. Over 80 mutual fund companies employs 60,000 salespersons and employs thousands more portfolio managers, administrators, analysts and marketing personnel. Brokers gain substantial transaction business from the funds. Auditors trust firms and advertising agencies make a good living off the funds. Guides, books, newsletters, public speakers, fund gurus, specialist software firms, rating companies and advisors also cash in. The media love to write about the fund industry and their advertising departments gladly receive the lucrative ad revenues. During RRSP season, television advertising becomes so pervasive that one cartoon observed, “The RRSP ads are periodically interrupted by hockey games”.  There are in fact very few organizations or people sufficiently objective to illuminate the disadvantages and shortcomings of mutual funds. Even regulators have moved slowly and cautiously to deal with this powerful and influential industry. The marketing departments of fund companies have rightfully earned a growing share of the “management fee”-in some cases marketing budgets are actually greater than the budgets for portfolio management.

The greatest challenge is to get more retail participation in funds. Tremendous efforts have been made in this direction. About 250 mutual fund outlets, including branches, franchisees and collection centers, were opened across the country in the last two years. Today, in metros and non-metros, there are more than 1,000 outlets to provide services to investors. 60 to 65 per cent of net assets still belong to institutional investors. But even the rest is no mean figure.

Mutual Funds are still not the most preferred investment vehicle in the country. In our country, people want to buy only sacred assets. Unless this mindset changes, it will be difficult to get investors interested in mutual funds. Government securities and post-office investments offer 8 per cent assured returns, while banks offer 6 per cent. So, competition is very high. Only sustained efforts by a trained and qualified distributor class can bring success.

AMFI has taken the initiative in training an army of distributors. Today, we have about 30,000 registered distributors. About 700 to 800 people are taking the test and getting registered every month. Around 100-odd investor awareness programmes are being conducted each month. From August to June this year, 1,600 programmes have been conducted across 600 locations by different fund

34

companies. Thanks to foreign banks distributing funds, there is a band of new investors today. More than 50 banks are active distributors. A lot of churning has been happening because of new fund launches wherein distributors are paid substantially higher commissions.

35

SWOT Analysis

A scan of the external and internal environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths(s) or weaknesses (w), and those external to the firm can be classified as opportunities (o) or threats (t).Such an analysis of the strategic environment is referred to as swot analysis. The SWOT Analysis provides information that is helpful in matching the firm’s resources and capabilities to the competitive environment in which it operates. The following diagram shows how a SWOT analysis fits into an environmental scan:

Internal External

Build on strengths Exploit opportunities

Revolve weaknesses Avoid threats

Hence, This SWOT Analysis identifies our company's:

Strengths - to build on

Weaknesses - to cover

Opportunities - to capture

Threats - to defend against

In the initial phase of this project we conducted interviews and distributor’s surveys by making the telephonic calls and meeting up the relationship managers at various banks to gather the relevant data. By receiving input from the respective relationship managers and distributors we are able to understand Reliance Mutual Fund’s strength and weaknesses and to an extent the customer perception about RMF as well. This allowed us to form recommendations that are listed at the end of this project.

36

Strengths:

1. Company’s Brand Name:

Well run companies have a well known name and reputation and this is the most powerful strength of the RMF as well. It’s the company brand name which is giving a hit to other market players when it comes to competing in the market whether it be in terms of coming up with new schemes or tapping the market opportunities.

Also RMF being a “domestic” brand plays a significant role as the distributors find it easy to pitch the Reliance products to customers.

2. Funds performances:

One of the most important reasons for RMF’s popularity is the return that its schemes have given i.e. the fund performance of RMF. The continuous dividend that the company keeps declaring is one of the most attractive elements of the RMF schemes. The flagship products of RMF i.e. Reliance Vision and Reliance Growth both have given returns of approximately more than 50% since its inception. Both the schemes have declared dividends on a regular basis. Also some of the schemes have been awarded for their best performances.

Reliance banking fund growth plan bagged the best fund award for three year return in the equity banking segment

Reliance Growth Fund was named as best equity funds in three year as well as five year return categories

Reliance Income fund growth plan was selected as best fund for five-year returns in the bond Indian rupee category

Reliance Gilt securities fund was awarded as the best three-year return fund in the bond India rupee-government segment

(According to globally acclaimed fund tracking firm Lipper Inc.)

3. Strong channel partner network:

Reliance Mutual Fund is one of the few mutual funds to pioneer retail investing in the country by reaching out to investors and distributors in over 115 cities through branches and representatives across India. Also the company has 1500+ distributors in Delhi region itself. Hence the

37

company’s strong distribution network is playing a great role in making reliance reaching out to maximum number of investors.

4. Highly trustable:

Any RMF scheme that is launched in the market does well because of the trust that RMF enjoys as a fund house. It is the most trusted mutual fund brand in the country according to a survey conducted by AC Nielsen ORG Marg.

5. Very Innovative:

The fund house is considered to be very innovative by the distributors. E.g. the Equity Fund NFO that was launched in the February 2006 by RMF was unique as it came with a unique feature of investing in futures and options. This scheme invests in the top 100 large cap companies of the country and in futures and options of 69 companies. The fund created history by collecting Rs.5700 crore from over 9.29 lakh applications.

6. Aggressive:

The fund house is considered to be very aggressive in following terms: New products

Marketing and distribution

Service

There are two ways in which a fund house can increase its market share. First, is by increasing the market share in the entire pie (which every fund house does). And second, is by increasing the radius or circumference of that pie. RMF believes in the second option. RMF has continuously increased the number of investors especially from retail segment. It has been instrumental in converting the FD investors into first time mutual fund investors. And this happened due to Fixed Maturity Plan launched by RMF. FMP(s) contributed app. Rs. 18000 crore in the total AUM of Rs.46307 crores. And this amount was mobilized majorly through RMF’s focus on retail segment.

7. Efficient Service CentersThe service centers opened by Reliance Mutual Fund have proved to be very efficient especially during NFOs. The bankers face a lot of concerns

38

regarding replenishment of application forms and also their submission during NFOs. So the service centers, which are strategically located in commercially viable places, have proved to be of great help.

8. Strong customer base:Reliance has the largest customer base of around 67 lakhs and it is the highest among all the AMCs.

Weaknesses:

1. Services:

Services provided to the bankers and retailers are the biggest area of concern. The services provided to distributors such as complaints solving, query handling and statements delivery have to be improved upon. The distributors surveyed complain about the queries at times are not followed up properly and the biggest concern is the delivery of accounts statements.

Lack of awareness among investors and agents about the fund.

Weak support systems, when needed at the time of crisis company representatives should assure the investors and the bankers.

Personal attention not given to customers queries.

Opportunities:

1. Educational institutions:

The educational institutions turn out to be a great opportunity for RMF in terms of obtaining large number investors and the amount of investments as well. These provide the potential for Reliance Salary Advantage product as the employees (teachers, office staff etc) can be tapped for the same. In addition to the employees their also lies another category i.e. of students of the graduation and the post graduation colleges who start earning either along with their studies or shortly after the completion of their degrees or courses. Also when studied the business model of these institutions it is learnt that the revenue inflows are mainly in the month of April May June July which is generally the lean period for rest of the industry and hence can be tapped at the beginning of the year.

39

2. Small and medium enterprises:

Another segment which can be tapped is of the SME’s. With a contribution of 40% to the country's industrial output and 35% to direct exports, the SME sector has achieved significant milestones for the industrial development of India. As discussed with mutual fund industry experts it was found that only 10% of this sector invests in mutual funds and rest 90% still remains as an open untapped market. So along with the existing markets their lies an opportunity to expand the base and capture this new market as in the future outlook these current SME segments are expected to turn into big corporate with the current boom in the economy. So it is essential to catch them young in their initial growth life cycle as they can turnout to be future large corpus client.

As it is known that only 10% of the SME’s are invested in MF’s so there lies a need to create the awareness for the same and creating awareness through: (Mass Marketing) such as broadcasting Ads with special focus on SME’s, sponsoring events like ICICI CNBC SME awards & giving presentations on cash flow management with mutual funds, giving ads in SME column in ET, participating in trade fairs and meeting corporate personally there, giving presentation in industrial area association meetings.

3. Households:

Delhi has around 35 residential locations having huge potential and can be tapped through average 4000 houses in each location. And there lies again the efforts to create the awareness for the same. This can be done through contacting various RWA’S and conducting group presentations to inform them about the products and the benefits they stand to gain from it. Another method can be stationing of canopies and placing a representative there to inform them about the products and not actually sell but to get leads and spread awareness about the product. Also getting a few local residents to become IFAs first and help them to conduct the presentation or seminar.

4. International fund

Investing internationally opens up a huge market which is otherwise left untapped. India’s market at present constitute only 5% of the world’s stock market. Several other fund houses have invested in international market like Franklin Templeton and Fidelity International Opportunities

40

fund. Moreover fund houses are now permitted by RBI to invest in ADR/GDR.

Threats

1. Increased competition:

Increased competition in the industry in terms of more upcoming schemes and better existing performances of mutual fund schemes of other AMC’s is the threat posed to RMF. As per the distributors HDFC, Franklin Templeton and SBI mutual fund schemes are giving tough competition to Reliance.

2. Services:

As the services provided by reliance fall short of the distributors expectations, hence the improved services provided by competitors sooner will be proving as a threat to the company and as per the market view Franklin Templeton and Fidelity are considered ahead of Reliance.

3. Recent volatility in stock market:

There is a strong relationship between volatility and market performance. Volatilty tends to decline as the stock market rises and increases as the stock market falls. When volatility increases, risk increases and returns decrease. The market is so volatile these days that no one is able to predict the market. Hence, this has become a big threat for the AMCs.

4. More redemption due to volatile market risks:

Due to the volatility in the market, customers have a fear in their mind of losing money, so more redemptions of the applications are taking place.

41

How expensive is mutual fund investment?

The first and last question on the minds of the investors is `what returns has the fund given?' What goes into the expenses? Is it possible for the fund house to lower the expenses?'

However, it pays to be aware of what the fund is charging investors. How much of the expense adds discernible value to the investment (in terms of a fund management fee), how much goes into pampering greedy mutual fund agents/distributors and banks by way of exorbitantly high commissions that add little value to the investor but add a lot of value to the distributor's bank balance.

First it's important to understand the structure of a mutual fund before one begins to appreciate how expenses are charged. While there are several entities involved in a mutual fund, like the Sponsors, Board of Trustees, Asset Management Company (AMC eg. HDFC Standard Life Asset Management Co. Pvt. Ltd.) And the mutual fund scheme (eg. HDFC Equity Fund), the last two are the most important elements in the context of our discussion. The AMC launches mutual fund schemes. The AMC and the mutual fund are two distinct entities. They have distinct revenue streams and expenses.

AMC's recurring expenses

Expense % of weekly net assets

Fund mangement fees 1.25%

Marketing/Selling Exp. 0.80%

Audit Fees 0.15%

Registrar Fees 0.12%

Trustee Fees 0.11%

Custodian Fees 0.07%

Total Recurring Exp. 2.50%

42

(The Recurring Expenses Table has been sourced from the Offer Document of an existing AMC)

As is evident from the table, the expenses of the AMC typically comprise of fund management expenses, marketing fees and audit fees among other expenses. Investors must note that these are expenses the fund incurs on a recurring basis (annually) to operate the mutual fund. This is over and above the entry/exit load which is a one-time fee. The entry load is usually a distribution expense that the AMC passes on to your mutual fund agent. Then there are expenses a fund incurs at the time of the NFO (New Fund Offer), which are distinct from the recurring expenses in the table above. The NFO expenses are one-time in nature, with a ceiling of 6% (of net assets), and as per SEBI (Securities and Exchange Board of India) guidelines are to be amortized over 5 years.

The fund management expenses are very important for the AMC. It is the AMC's only revenue stream. It is the fund management expense from which the AMC declares a profit after accounting for all expenses like salaries for its employees (which include fund managers and analysts among others), rent and administration expenses.

Equity funds can and do charge as high as 1.25% (of net assets) as fund management fee to the mutual fund. Long term debt funds are also mandated to charge a maximum of 1.25% (of net assets), but rarely do so. scope to charge the entire 1.25% fund management charge to the fund. So with most debt funds, the 1.25% fund management charge is a lot lower. The percentage varies across funds, but it's below 1.00% in most cases.

This also explains why AMCs prefer to own a larger share of equity assets than debt assets. Equity assets draw a much larger fund management fee, which has a direct impact on the AMC's profitability. That tells investors a lot about the mad rush to launch equity NFOs (new fund offers) that has been on display for quite some time now.

As per existing guidelines, these expenses are to be amortized over a period of 5 years. These expenses form part of the recurring expense ceiling on equity funds (2.50%) and debt funds (2.25%). So AMCs cannot amortize the NFO expenses over and above the recurring expense limit.

As investors would have gathered, it's a matter of choice for the AMC whether its wishes to beef up its own profitability or lower costs for the mutual fund. Since uncompromising investors have their eye on NAV returns and not on the AMC's net profit, it seems like an easy decision for AMCs how they must allocate expenses. However, as we have seen, it's not always that obvious. AMCs can

43

cut the fund management charges on equity funds (from the maximum of 1.25%), but rarely do so. They prefer to do that only with debt funds because the environment demands such cost-cutting.

That is why investors must get a lot more aware and question AMCs on why they charge such high expenses when they can very well cut down on them to add to the investors' returns. Investors in developed markets like the US for instance, have already driven AMCs into getting cost conscious and making them impose rigid ceilings on several charges, including fund management charges. It's time for the domestic mutual fund investor to take his cue from his US counterpart.

44

Methodology and Findings

Methodology

The project consisted of visiting different distributors in South Delhi region were chosen for the survey. The reason for choosing these particular areas were that South Delhi has a lot of potential for investors. It consisted of three stages:

Stage 1: Gathering data from the company and plan schedule to meet the concerned PersonStage 2: Collecting data by survey method, on the basis of questionnaires.Stage 3: Analyzing and interpreting the primary data collected.

Research design:

It is a framework or blueprint for conducting the marketing research project. The research design used here is Descriptive Research Design which is used for description of something. Here it is used to describe the characteristics of Relationship Managers and Financial Planning Managers with respect to the services expected from Reliance Mutual Fund. For this purpose Primary Data was collected through

Personal Interviews and Questionnaires filled by the Distributors. Questionnaires filled through e-mails. Inputs from the employees of the company.

It also consists of Secondary Data analysis through: Internet and Web Search. Fact Sheets and annexure collected from different Mutual Fund

companies. Details of distributors from the Relationship Managers of Reliance

Mutual Fund.

Data collection – Survey method

45

The survey method of collecting data is based on the questioning of respondents. They are asked variety of questions regarding their behavior, intentions, attitude, awareness and motivations. In structured data collection, a formal questionnaire is prepared thus the process is direct. The questionnaire designed for this project consists of questions based on various parameters which a relationship manager would consider before selling a mutual fund. Each question is based on different variables like investment decisions, selling decisions, company policies, servicing issues etc.

Structure:

Scaling techniques:Scaling is a process creating a continuum on which measured objects are located.For this project the following scaling techniques were used:

1) Ordinal scale:A ranking scale in which numbers are assigned to the objects to indicate the relative extent to which some characteristic is possessed. Thus it is possible to know whether an object has more of a characteristic than some other object. Examples are quality ranking, service characteristics ranking etc.

2) Rank order scaling:A comparative scaling technique in which respondents are presented with several objects simultaneously and asked to order or rank them according to some criterion. For example respondents may be asked to rank brands of toothpaste according to overall preference.

Questionnaire:

The information needed for the research project can be best collected through questionnaire method as the information is more clearly defined and it would clearly address all the components of the problem.

The questionnaire designed here is based on parameters like:1. Investment decision2. Comparison of characteristics of Reliance Mutual Fund with other

mutual funds.3. Basis of promoting Reliance Mutual Fund.4. Basis for promoting other mutual funds as compared to RMF.5. Performance indicators taken into account before advising any investment

option.

46

6. Kind of services expected from Reliance Mutual Fund like the frequency of visits, mode of contacting the Relationship managers etc.

Personal interviews:

For this purpose personal interviews were taken along with filling the questionnaire to get detailed information for other products prevailing in the market. Thus varied questions were also asked verbally along with the written questionnaire to find out how do services of other mutual fund companies are different or better than services of Reliance Mutual Fund.

Questions like:1. What are the frequencies of visiting of relationship managers of other

companies?2. In what ways do you find other mutual fund companies better than RMF?3. What complaints do you have from RMF?4. Do you get sufficient inputs based on knowledge about various funds from

RMF?5. Are there any servicing issues like account statements for investors,

unavailability of forms, fact sheets etc? 6. Any suggestions for RMF

Questions were asked from the respondents to get the real picture of what is expected out of Reliance Mutual Fund in order to improve its services.

Sampling:

Sample size: The sample size of 50 distributors of retail channel is taken. 28 were personally interviewed and questionnaires were filled and 22

questionnaires were filled through e-mails.

Analysis and Findings:

On the basis of the responses given in the questionnaire by the respondents the following analysis can be done:

1. The overall response of the customers about the Reliance Mutual Fund is very satisfied and more than 50% of the distributors are selling Reliance Mutual Fund because of the credibility of RMF among the customers.

47

a) 26 out of 50 distributors have experienced that the overall quality of RMF is very satisfied among customers, which is more than 50%.

b) About 38% prefer that the overall quality is satisfied. c) About 6% distributors said that the customers are neutral

about RMF.d) About 4% of the distributors said that customers are dissatisfied

and very dissatisfied.

By this graph, We can see that the overall quality of RMF is very satisfied among the customers. This can be due to the following reasons:

Greater Distribution Channels. Employees knowledge about the products Responsiveness of the employees in resolving queries. Individualized attention/personalized services. Greater Return with less risk. Goodwill of the company.

2. The service & Operation part of RMF is very good & about 60% of the distributors are very happy with the services part of RMF.

a) About 60% of the distributors told that the services & operation part of RMF is very good.

b) About 32% of the distributors told that the overall services of RMF is good.

c) 6% of the distributors told that the services of RMF is on average.

48

d) About 2% of the distributors are not happy with RMF regarding their services & Operation part.

By this graph, We can see that the Overall services & operations part of RMF is very good and mostly all the distributors are very happy with this.

To improve the services of Reliance mutual fund the distributors expect the representatives to meet them regularly and update them with new facts and figures.

The frequency of visits expected from the representatives of Reliance Mutual fund is one of the important criteria which is considered by the distributors as a characteristic of good services.

3. Almost 94% of the Distributors are getting enough materials for the promotional purposes and about 6% of the distributors are disagree with the promotional part of RMF. This can be shown in the graph as shown:

49

For the promotion purpose, the servicing like availability of format forms and fact sheets etc should be provided to the distributors in time. Just 6% of the distributors were disappointed by the promotional activities, most of them are tier-3 distributors.

4. The most & the important part of any business is the relationship between the seller & the buyer. So, I categorized the strongness of the relationship between the Relationship Manager & the Distributors.(a) About 74% of the distributors have a very strong relationship with the

Relationship Manager.(b) About 16% of the distributors have a strong relationship with RM of RMF.(c) About 8% of the distributors have average kind of relationship with RM(d) Only 2% of the distributors are not happy with the relationship with RM

50

By the above graph, I have analyzed that the overall Relationship of the Relationship Manager of Nehru Place Branch is very Strong. There are some reasons behind this as follows:

(a) Frequent Calling to all the distributors(b) Communication & updation with the E-mails as well as calls.(c) Frequent meetings with the distributors.(d) Interactive sessions with the distributors time to time. E.g. we have done

sessions on ‘Current Market Scenario and Asset Allocation’ & ‘Time Management’.

(e) Updation of New Products e.g NFOs, FMPs, Liquid Funds etc.& Dividends via calling, SMSs, E-mails.

(f) Faster response to the queries of the distributors like brokerages, materials for promotions.

(g) Frequently sending the stationary materials to the distributors for the promotional purposes.

I have also analyzed that the relationship of the distributors & Relationship Manager is not good only in case of the distributors who lies in the Tier-3 categories. So, the concentration should be taken place on the Tier-3 distributors.

51

How company got benefit by my project:

There should be the concentration & timing not only on the Tier-1 & Tier-2 distributors but also, Relationship Managers also have to concentrate on Tier-3 distributors. For this purpose, I personally handling Tier-3 distributors, I regularly meet them, updating the information about the new products by calling them and resolved all their queries. If there are any complaints, I use to solve that problem. If any distributor wants to do any activities like canopy etc., then I take permission for this from Relationship Manager and allow them for the activities. At Nutshell I want to say, I am working as the Relationship Manager of the Tier-3 distributors and new empanelled distributors. That was actually needed because earlier there was very less concentration & timing on the Tier-3 distributors because ‘These small drops (business given by Tier-3 distributors) will make Reliance Mutual Fund that biggest ocean that no one can compete’.

I have analyzed that the number of employees working in Karvy (Registrar) are not up to the mark in comparison to the work load given by Reliance Mutual Fund. This is the main reason why the customers are not getting the account statements in time and lots of mistakes in the data entry are there. For avoiding this reason, we are providing the software of karvy to every distributor. For this purpose, whenever I use to meet the distributors, I give the guidelines of operating this software. By this, any distributor can provide the Account statement at their own. This also increases the business of retail channel because of good services provided by the distributors.

Because of Karvy end, so many distributors have their complaints of not getting the brokerage. For this reason, I use to handle the CRM software, in which, I use to enter the complaint against the brokerage part. By this way, I use to resolve the complaint of brokerage. By this, I maintained a good relationship with all the distributors because the main and the important part of any broker is the brokerage.

Fixed Maturity Plans are open only for 3-5 days. In this small period of time, most of the distributors even don’t know whether any FMP is coming or not. For this reason, I use to call each & every distributors and mail them about the FMP because in case of any AMC, the most of the business comes from the FMP & Liquid Funds. That increases the AUM of the company in easy way, hence increases the liquidity.

Some distributors don’t know about the liquid fund, some don’t know about the debt funds etc. So, there should be a time to time training given about all the products. For this purpose, I called and gathered 5-6

52

distributors at a time and gave the understanding about these products. I exercised this practice for 7 times means I gave the thorough knowledge of the products of Reliance Mutual Fund to about 40 distributors.(Mostly Tier-3 Distributors, because they need this kind of presentations).

The proper training & product knowledge should be given to the selling persons appointed by the NDs (National Distributors). For this purpose, I use to visit the NDs office and give the training to these selling persons and tell them the ‘Art and Science’ of selling & pushing the product to the customers. I always use to tell them that “PUSH THE PRODUCT FIRST, GIVE THEM THE SERVICES THEY WANT AND THEY WILL AUTOMATICALLY PULL TOWARDS YOU”

There should be a time to time activity like canopy, Training programs, presentations by the Relationship Managers for the distributors so as to maintain the good relationship between them. For this Purpose, I arranged the canopies for some distributors and done this activity of sitting in canopy and resolve all the queries asked by the customers passed away these canopies. I also arranged ‘Time Management Training’ for our distributors. That provided a great interaction with them.

There is a saying that ‘For the expansion of any business, there should be a good customer base.’ In the case of retail channel, our business partners are the distributors/IFAs/NDs/Agents. So, There should a great number of distributors working for Reliance Mutual Fund (Empanelled under RMF). For this purpose, I empanelled about 40 distributors under South Delhi Area only. By this way, I expanded a lot of business of Reliance Mutual fund.

The relationship Manager should have the idea of the competitive AMCs products’ strength & weakness so that we can take edge over others by defeating them by their weaknesses and our strengths’ and also, there should be a proper comparative analysis & Financial analysis with other AMCs so as to become the market leader. For this purpose, I have analyzed the comparative analysis & Financial analysis with our competitors. This is described in the next part of the report.

53

Comparison of Reliance Mutual Fund with Other AMCs:

The distributors have a large variety of products to offer to the prospective investors. But the catch here is a large no of companies offering similar products to the investors. Thus there are large numbers of mutual fund products flooding the market. So, there should be some factors, which will compare Reliance schemes with other AMCs. These comparative factors are:-

1. Sharpe Ratio :

While an investor seeks to generate high returns the question arises, how high? Though the sky can be the limit, usually one asks for returns, which are higher than those, which we are normally accustomed to. These are returns from risk-less instruments like treasury bills, government securities or bank savings deposits. So the aim of investing seems to be to generate returns in excess of the risk free return.  

At the same times high returns are generally associated with a high degree of volatility. The Investors accept this volatility only because they want higher returns. The Sharpe ratio represents this tradeoff between risk and returns. At the same time it also factors in the desire to generate returns, which are higher than those from risk free returns. 

Mathematically, the Sharpe ratio is the returns generated over the risk free rate, per unit of risk. Risk in this case is taken to be the fund's standard deviation. As standard deviation represents the total risk experienced by a fund, the Sharpe ratio reflects the returns generated by undertaking all possible risks.

 Sharpe Ratio:

      

A higher Sharpe ratio is therefore better as it represents a higher return generated per unit of risk. However, while looking at Sharpe ratio a few points have to be kept in mind to obtain an accurate reading of the fund's performance.

54

Firstly, being a ratio, the Sharpe measure is a pure number. In isolation it has no meaning. It can only be used as a comparative tool. Thus the Sharpe ratio should be used to compare the performance of a number of funds.

Alternatively one can compare the Sharpe ratio of a fund with that of its benchmark index. If the only information available is that the Sharpe ratio of a fund is 1.2, no meaningful inference can be drawn as nothing is known about the peer group performance.

The Sharpe ratio uses standard deviation as it's risk component, a low standard deviation can unduly influence results. Thus a fund with low returns but with a relatively mild standard deviation can end up with a high Sharpe ratio. Such a fund will have a very tranquil portfolio and not generate high returns.

For an investor who puts in all his/her money in a single fund, Sharpe ratio is a useful measure of risk-adjusted return. This is because standard deviation measures total risk and this is the case with a single portfolio. 

The Sharpe ratio tells us whether a portfolio's returns are due to smart investment decisions or a result of excess risk. This measurement is very useful because although one portfolio or fund can reap higher returns than its peers, it is only a good investment if those higher returns do not come with too much additional risk. The greater a portfolio's Sharpe ratio, the better its risk-adjusted performance has been.

2. Beta :

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market. For example, if a stock's beta is 1.2, it's theoretically 20% more volatile than the market.

Calculating BETA

BETA is ascertained mathematically by finding the covariance of the returns of the scrip to those of the market and then dividing it by the variance of the market return. As a market professional one is aware of his / her investment objectives and how much risk he/she can assume and can best decide whether to use weekly, monthly or daily pricing information in BETA calculation. 

55

For this study, Historical data for benchmark indices-BSE 200, NIFTY, CNX 500, SENSEX and NAV performance of each of the funds have been collected. 

BETA (β) = Covariance (portfolio’s NAV, market Index)

            Variance (market Index)

3. Alpha :

The basic idea is that to analyze the performance of an investment manager you must look not only at the overall return of a portfolio, but also at the risk of that portfolio. For example, if there are two mutual funds that both have a 12% return, a rational investor will want the fund that is less risky. Jensen's measure is one of the ways to help determine if a portfolio is earning the proper return for its level of risk. If the value is positive, then the portfolio is earning excess returns. In other words, a positive value for Jensen's alpha means a fund manager has "beat the market" with his or her stock picking skills.

4. R-Squared :

R-squared values range from 0 to 1. An R-squared of 1 means that all movements of a security are completely explained by movements in the index. A high R-squared (between 0.85 and 1) indicates the fund's performance patterns have been in line with the index. A fund with a low R-squared (0.70 or less) doesn't act much like the index.

56

5. Standard Deviation :

In the core of the fund analysis activity lie the twin pursuits of judging returns and risk. Stripped of a lot of the complexity, this task involves determining a fund's average performance over a period of time.

Standard Deviation gives a quality rating of an average. The Standard Deviation of an average is the amount by which the numbers that go into an average deviate from that average. It tells us how closely an average represents the underlying numbers.

If the individual monthly performances are very different from the average, then that fund is risky, delivering high returns in some months and poor returns in others. If they are mostly similar, then the fund is a low risk one, with about the same returns month after month.

A high Standard Deviation may be a measure of volatility, but it does not necessarily mean that such a fund is worse than one with a low Standard Deviation. If the first fund is a much higher performer than the second one, the deviation will not matter much.

6. P/B ratio :

A ratio used to compare a stock's market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter's book value per share. A lower P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company.

7. P/E Ratio :

A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

57

Comparison of Large Cap funds of different AMCs:I have analyzed the large Cap funds of Reliance, ICICI, HDFC, Tata AMCs.The following are given the funds which invest their corpus in large cap companies.

Reliance Vision Fund ICICI Pru-G Fund HDFC Equity-G Tata Pure Equity-G Fund

The following are given the comparison of these four funds according to some factors:

Reliance ICICI HDFC TataR-Squared 0.84 0.93 0.91 0.90Beta 0.92 0.93 0.88 0.92Alpha 3 1.75 4.81 3.18Mean 32.45 31.54 33.43 32.80Standard Deviation

25.51 24.60 23.65 24.87

Sharpe Ratio 1.08 1.08 1.20 1.12Benchmark BSE-100 S & P CNX

NiftyS & P CNX-500

Sensex

Investment P/B Ratio

5.54 5.22 5.07 6.28

Investment P/E Ratio

34.04 28.25 31.18 36.94

% of Equity Allocation

94.69 93.01 95.72 90.33

% of Debt Allocation

00.00 0.62 1.78 0.45

% of Others 5.31 6.37 2.5 9.22Type Open Ended Open Ended Open-Ended Open-EndedFund Category

Equity-Diversified

Equity-Diversified

Equity-Diversified

Equity-Diversified

Entry Load 2.25% upto 2crores & 1.5% from 2 to 5 crores

2.25% upto 5 crores

2.25% upto 5 crores

2.25% upto 1 crore

Exit Load 1%, if redemption before 1 year

1%, if redemption in between 0 & 180 days, 0.5%, if redemption in between 180 & 365 days

Nil 1% , if redemption between 0 & 180 days upto 1 crore

58

upto 5 croresAnalysis & Findings:

The comparison is given on the basis of some factors as follows:

1. On the Basis of R-squared:

The movements of a ICICI pru-G Fund is mostly explained by movements in the index followed by HDFC Equity Fund, Tata Pure Equity Fund, Reliance Vision Fund. Hence high R-squared value of ICICI Pru-G Fund indicates the fund's performance patterns have been in line with the index.

2. On the basis of Beta:

The volatility of all the funds are less volatile than that of the market because the beta of all the funds is less than 1.

59

3. On the Basis of Alpha:

HDFC Equity-G Fund is taking higher risk and earning higher returns followed by Tata, Reliance, ICICI AMCs.

4. On the basis of Standard Deviation:

The portfolio of Reliance Vision fund comprises of the volatile stocks hence the volatility in their returns is higher than other AMCs because it has the higher standard deviation.

5. On the Basis of Sharpe ratio:

Same as Alpha, It is also showing the risk adjusted performance, so HDFC has the higher risk taking capacity and higher returns means it has the highest risk taking capacity than other AMCs.

60

6. On the Basis of P/E Ratio:

The stocks in the portfolio ICICI Pru-G Fund are earning highest with less risk than that of other AMCs and the stocks in the portfolio of Tata Pure-Equity Fund is earning least with the same risk.

61

Comparison of Mid Cap funds of different AMCs:I have analyzed the large Cap funds of Reliance, ICICI, HDFC, Tata AMCs.The following are given the funds which invest their corpus in mid cap companies

Reliance Growth Fund ICICI Pru Discovery Fund HDFC LT Advantage Fund Tata Contra-G Fund

The following are given comparison of these four funds according to some factors:

Reliance ICICI HDFC TataR-Squared 0.73 0.62 0.69 0.90Beta 0.92 0.87 0.71 0.92Alpha 8.85 -1.35 2.08 3.18Mean 38.48 26.78 26.04 32.80Standard Deviation

27.59 28.16 21.83 24.87

Sharpe Ratio 1.21 0.77 0.96 1.12Benchmark BSE-100 S & P CNX

NiftyS & P CNX-500

Sensex

Investment P/B Ratio

5.14 2.25 6.85 4.66

Investment P/E Ratio

38.28 17.74 28.03 23.90

% of Equity Allocation

84.41 96.90 94.75 98.67

% of Debt Allocation

00.00 1.31 0.00 0.72

% of Others 15.59 1.79 5.25 0.61Type Open

EndedOpen Ended Open-Ended Open-

EndedFund Category Equity-

DiversifiedEquity-Diversified

Equity-Tax Planning

Equity-Diversified

Entry Load 2.25% upto 2crores & 1.5% from 2 to 5 crores

2.25% upto 5 crores

2.25% upto 5 crores

2.25% upto 1 crore

Exit Load 1%, if redemption before 1 year

1%, if redemption in between 0 & 180 days, 0.5%,

Nil 1% , if redemption between 0 & 180 days

62

if redemption in between 180 & 365 days upto 5 crores

upto 1 crore

Analysis & Findings:

The comparison is given on the basis of some factors as follows:

1. On the basis of R-Squared:

The movements of a Tata Contra Fund is mostly explained by movements in the index followed by Reliance Growth Fund, HDFC LT Advantage Fund, ICICI Pru-Discovery Fund. Hence high R-squared value of Tata Contra Fund indicates the fund's performance patterns have been in line with the index.

2. On the Basis of Beta:

The volatility of all the funds are less volatile than that of the market because the beta of all the funds is less than 1. The volatility is very less in case of HDFC LT Advantage.

63

3. On the Basis of Alpha:

Reliance Growth Fund is taking higher risk and earning higher returns. But in Case of ICICI Pru Discovery fund is not even able to cover their return as according to their risk as the value of ICICI pru-discovery fund is negative.

4. On the basis of Standard Deviation:

The portfolio of ICICI Pru Discovery fund comprises of the volatile stocks hence the volatility in their returns is higher than other AMCs because it has the higher standard deviation.

5. On the Basis of Sharpe ratio:

Same as Alpha, It is also showing the risk adjusted performance, so Reliance growth Fund has the higher risk taking capacity and higher returns means it has the highest risk taking capacity than other AMCs.

64

6. On the Basis of P/E Ratio:

The stocks in the portfolio ICICI Pru-Discovery Fund are earning highest with less risk than that of other AMCs and the stocks in the portfolio of Reliance Growth Fund is earning least with the same risk.

65

Comparison of Sector Allocations among the AMCs:

1. Reliance Vision Fund:

 

By the above pie chart, It is shown that the Fund manager of Reliance Vision Fund is mostly dependent on the companies which comprises of financial sectors means maximum corpus has been invested into financial services companies. By the above graph, it is also shown that total corpus has been divided somewhat equally among all the sectors, there is not much fluctuation in the investments among the sectors hence by this we can say that the diversification of the total corpus is managed equally among all the chosen sectors.

2. ICICI Pru Growth-G Fund:

66

By the above pie chart, It is shown that the Fund manager of ICICI Pru Growth-G Fund is mostly dependent on the energy sectors companies means maximum corpus has been invested into energy sectors companies. By the above graph, it is also shown that there is a fluctuation in the investments among the sectors e.g. we can see that about 22.97% of the corpus has been invested into energy sectors and only 1.46% of the corpus has been invested into consumer Non-durables.

3. HDFC Equity-G Fund:

67

By the above pie chart, It is shown that the Fund manager of HDFC Equity-G Fund is mostly dependent on the companies which comprises of financial sectors means maximum corpus has been invested into financial services companies. By the above graph, it is also shown that total corpus has been divided somewhat equally among all the sectors, there is not much fluctuation in the investments among the sectors hence by this we can say that the diversification of the total corpus is managed equally among all the chosen sectors.

4. Tata Pure Equity-G Fund:

68

By the above pie chart, It is shown that the Fund manager of Tata Pure Equity-G fund is mostly dependent on the companies which comprises of financial sectors means maximum corpus has been invested into financial services companies. By the above graph, it is also shown that there is a fluctuation in the investments among the sectors e.g. we can see that about 16.93% of the corpus has been invested into financial sectors and only 0.79% of the corpus has been invested into consumer durables.

Comparison of Sector Allocations among the AMCs:

69

1. Reliance Growth Fund:

By the above pie chart, It is shown that the Fund manager of Reliance Growth Fund is mostly dependent on the energy sectors companies means maximum corpus has been invested into energy sectors companies. By the above graph, it is also shown that total corpus has been divided somewhat equally among all the sectors, there is not much fluctuation in the investments among the sectors hence by this we can say that the diversification of the total corpus is managed equally among all the chosen sectors.

2. ICICI Pru Discovery Fund:

70

By the above pie chart, It is shown that the Fund manager of ICICI Pru Discovery Fund is mostly dependent on the companies which comprises of consumer durables means maximum corpus has been invested into consumer durables sectors companies. By the above graph, it is also shown that total corpus has been divided somewhat equally among all the sectors, there is not much fluctuation in the investments among the sectors hence by this we can say that the diversification of the total corpus is managed equally among all the chosen sectors.

3. HDFC LT Advantage Fund:

71

By the above pie chart, It is shown that the Fund manager of HDFC LT Advantage fund is mostly dependent on the companies which comprises of Basic/Engineering sectors means maximum corpus has been invested into Basic/Engineering companies. By the above graph, it is also shown that there is a fluctuation in the investments among the sectors e.g. we can see that about 19.22% of the corpus has been invested into Basic/Engineering sectors and only 1.99% of the corpus has been invested into Textiles sectors.

4. Tata Contra-G Fund:

72

By the above pie chart, It is shown that the Fund manager of Tata contra-G fund is mostly dependent on the companies which comprises of services sectors means maximum corpus has been invested into services companies. By the above graph, it is also shown that there is a fluctuation in the investments among the sectors e.g. we can see that about 21.93% of the corpus has been invested into services sectors and only 0.83% of the corpus has been invested into Consumer Durables sectors.

Recommendations and Suggestions:

73

There should be given more time & concentration on the Tier-3 distributors.

The resolution of the queries should be fast enough to satisfy the distributors.

Time to time presentation/training classes about the products should be there.

There should be more number of Relationship Managers in Delhi Region because one RM can handle a maximum of 125 distributors efficiently and also to cover untapped market.

Regular activities like canopy should be done so as to get more interaction with the distributors.

Regular session should be organised on the handling of the karvy’s software so as to resolve the account statement problem.

All the persons who have cleared the AMFI exam should be empanelled with Reliance Mutual Fund so as to be largest distributor base.

Should have to provide more advertisements, canopies in the shopping mall, main markets because no. of people visiting these places are mostly of service classes and they have to save tax, hence there is more opportunity of getting more no. of applications.

74

Bibliography

Search Engines

a) Googleb) Yahoo

Websites

a) www.valueresearchonline.com b) www.business-standard.com c) www.reliancemutual.com d) www.amfi.com e) www.hdfcbank.com

75